Highlights

  • Four existing shareholders bought 9,756,100 Class A shares at US$1.64 each, giving U Power US$16 million in gross proceeds.
  • Proceeds are earmarked for hydrogen power for Thai data centers and battery-swapping projects in Thailand, Europe and Hong Kong.
  • The Hydro Data joint venture agreed a 3MW pilot for a planned 100MW Data Center project in Rayong, Thailand.
  • Fiscal 2025 Revenue fell 7.1% to RMB41.1 million, while gross Margin improved to 36.3% from 23.6%.

Fresh Capital from its own shareholders is funding the next phase of expansion at U Power Limited (NASDAQ:UCAR). The battery-swapping technology company closed a US$16 million private Placement with four existing shareholders on 3 August 2026, and said the money will support hydrogen energy for data centers in Thailand alongside its electric vehicle battery-swapping projects overseas.

The raise was the latest in a series of 2026 financings for the company, which is repositioning itself as a provider of AI-integrated energy and transportation solutions.

Placement Terms and Use of Proceeds

Under subscription agreements signed on 3 August 2026, the four investors acquired 9,756,100 Class A ordinary shares at US$1.64 per share in an offshore transaction under Regulation S. The transaction closed the same day after board approval, and the shares are unregistered in the United States.

U Power plans to use the proceeds to expand hydrogen energy solutions for intelligent data centers in Thailand and to fund core operations and overseas battery-swapping expansion. Named projects include a heavy truck program in Thailand, an electric van project in Southern Europe and a taxi project in Hong Kong. Earlier in 2026, the company closed a US$6.0 million public offering in March and announced a US$25.7 million private placement in April.

Hydrogen Pilot Anchors the Thailand Strategy

In May 2026, the company-controlled Hydro Data joint venture agreed to develop an integrated energy solution for a 100MW data center project in Rayong, Thailand, starting with a 3MW pilot to support primary and backup power. Jiangsu Guofu Hydrogen Energy Equipment is to Supply power generation equipment, and CEWA Group is to lead local infrastructure work. The contract value and customer were not disclosed.

U Power expected to set up a Thailand-based Subsidiary by 31 July 2026, with the joint venture beginning operations within 90 days after that. Founder and Chief Executive Jia Li described the pilot as a milestone to demonstrate performance and economics, with a pathway to scale. In Thailand's trucking sector, the company also outlined a plan to deploy up to 1,000 battery-swapping electric truck tractors for Whale Logistics.

Revenue Mix Shifts as Losses Widen

For the year ended 31 December 2025, total net revenue declined to RMB41.1 million (US$5.9 million) from RMB44.3 million. Product sales fell 12.4% to RMB36.6 million, while battery-swapping service revenue rose 41.5% to RMB3.4 million and sourcing services revenue climbed to RMB1.1 million.

Gross profit rose 42.6% to RMB14.9 million. However, the net loss widened to RMB80.5 million (US$11.4 million) from RMB56.3 million, and the loss per share was RMB15.05. Cash and cash equivalents were RMB22.0 million at year-end. US dollar amounts are convenience translations at RMB7.0288 per US$1.00.